General items: Standing Committee on Public Accounts—February 23, 2021

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Opening remarks

Opening

Mr. Chair, members of the Committee on Public Accounts, thank you for having me here to discuss Public Services and Procurement Canada's (PSPC) response to the Spring 2019 Audit of the Oversight of Government of Canada Advertising, which was undertaken by the Auditor General of Canada.

Today, I am pleased to provide an update on the actions taken by PSPC in response to the Auditor General's recommendation that pertains to our department.

Mr. Chair, Public Services and Procurement Canada is committed to ensuring that advertising by Government of Canada departments is non-partisan in nature.

We accepted and followed through on the recommendation that we should provide clear direction and training to our advisors on how to conduct reviews of Government of Canada advertising to ensure non-partisanship.

Today, I will provide a brief overview of the role Public Services and Procurement plays in the oversight of the Government of Canada advertising process as well as how we have taken action to support the goals outlined in the recommendation from the Office of the Auditor General (OAG).

Public Services and Procurement Canada's role in the advertising review process

Communication with Canadians, which includes advertising, is central to the Government of Canada's work and contributes directly to the Canadian public's trust in their government.

Government advertising can help to convey important information about policies, programs and services, as well as information about Canadians' rights and responsibilities under the law, and information to help protect their interests and well-being.

PSPC provides advisory services and technical advice with respect to legislation and policy requirements including the Federal Identity Program, Official Languages and non-partisanship. As such, we review all advertising materials submitted and, where appropriate, provide advice to departments.

Mr. Chair, with respect to the non-partisan review process, campaigns with a budget of over $250k must undergo a third party review process, which PSPC coordinates. Those with a budget under this threshold may be formally reviewed through the formal review process at the discretion of the advertising department.

With respect to the recommendation directed at PSPC, after a review of PSPC files and documentation, the Office of the Auditor General recommended that the department undertake training on how to conduct reviews, including documenting the rationale for assessments. And that's exactly what we have done.

Improving the non-partisan oversight mechanism

Mr. Chair, the Auditor General's report made 6 recommendations with respect to the non-partisan oversight mechanism, of which 1, paragraph 4.51, was directed at our department.

The recommendation was that Public Services and Procurement Canada should provide clear guidance and training to its half-dozen advisors on how to conduct their reviews, including documenting the rationale for their assessments of all non-partisanship criteria.

Following this recommendation from the OAG, with which we wholeheartedly agreed, PSPC immediately undertook to create and update training materials and checklists for all of our advisors. This work was fully completed by December 2019.

As part of this work, we developed a process map of the non-partisan review process to support PSPC advisors in the consistent review and documentation of advertising, which was completed in October 2019.

The process map was presented to all advisors to ensure they had a clear understanding of the process and could apply it consistently.

We also developed a checklist that includes steps connected to the non-partisan review criteria. This was also completed in October 2019.

Finally, the new advertising management information system, which has been procured and is being configured, will allow for all relevant documentation to be stored in the system itself, including a step uniquely associated with non-partisan reviews.

Mr. Chair all of these enhancements made to our processes have been implemented and are fully operational.

Closing

Mr. Chair, I assure you that PSPC has fulfilled its responsibilities per the recommendation issued by the Auditor General. I can tell you that our guidelines and tools have been fully updated to support the consistent application of legislative and policy requirements related to oversight of non-partisan advertising.

I'd like to conclude by stressing that PSPC remains committed to ensuring that advertising by Government of Canada departments is non-partisan in nature and to consistently support the government's pledge to demonstrate openness and transparency in advertising at all times.

Thank you.

Questions and answers

In this section

Non-partisan review of government advertising

Question 1: What is the role of Public Services and Procurement Canada (PSPC) in non-partisan review?

The role of PSPC (through the Advertising Services Directorate) is to coordinate and facilitate the formal, independent non-partisan review process established with Ads Standards. The process is initiated when a request is submitted by a department. The steps to complete the process are the following:

Question 2: What has PSPC done to address the Auditor General's recommendations?

Our department is committed to demonstrating openness and transparency with respect to advertising and welcomed the Auditor General's audit and recommendations.

We agreed with the one recommendation addressed to our department, in paragraph 4.51, that we should provide clear direction and training to our advisors on how to conduct reviews of Government of Canada advertising to ensure non-partisanship.

As indicated in our action plan, the specific actions completed by our department (through the Advertising Services Directorate) to address this recommendation are:

Question 3: Do all government advertising campaigns undergo the non-partisan review?

Non-partisan review by Ads Standards is mandatory for advertising campaigns with budgets over the established threshold. Prior to April 1, 2020, the established threshold was campaigns with a budget over $500,000. Since April 1, 2020, the established threshold is campaigns with a budget over $250,000.

The process is optional for advertising campaigns with budgets under the established threshold; however, if submitted, the same process applies as for the mandatory review, and departments must comply with the determinations provided by Ads Standards.

Whether or not advertising campaigns are submitted to Ads Standards for review, as defined in policy, deputy heads of individual departments are responsible for ensuring that all their communications products and activities are non-partisan, including. advertising activities

Question 4: What role does PSPC play in non-partisan review for advertising campaigns under the established threshold not submitted to Ads Standards?

There is no specific role in policy for PSPC in regards to non-partisan review for advertising campaigns not submitted to Ads Standards (campaigns with a budget under the established threshold).

While the report of the Office of the Auditor General suggests that advertising campaigns with budgets less than the established threshold are required to be reviewed and approved by PSPC, that is not the case.

As defined in policy, PSPC (through the Advertising Services Directorate) provides advisory services and technical advice with respect to legislation and policy requirements in regards to government advertising. In this capacity, we review all advertising material submitted by departments and, where appropriate, provide advice.

This clarification of our department's role was conveyed to the Office of the Auditor General Principle (Ms. Michelle Salvail), in a letter dated March 20, 2019. Despite the clarification, the final report did not accurately reflect our department's role.

Question 5: What happens if departments disagree or fail to comply with the determinations provided by Ads Standards?

PSPC (through the Advertising Services Directorate), notifies the Treasury Board of Canada Secretariat and withholds issuing the media placement authorization number for the advertising campaign.

To-date, our department has not submitted any problematic files to the Treasury Board of Canada Secretariat.

Question 6: How long does the non-partisan review take?

Prior to April 1, 2020, 3 business days were allocated for Ads Standards to complete each stage, the initial review and the final review. Since April 1, 2020, 2 business days are allocated. In most cases, the review is completed faster.

Question 7: How many times has the review process flagged ads that are partisan? What was done?

The number of times that issues were flagged by Ad Standards in the initial review does not provide any relevant information. When this has occurred, the issues were addressed in the final review. There have been no occurrences of partisan ads being placed.

PSPC has no operational reasons for keeping track of the number of reviews or the number of times that issues were flagged by Ad Standards. Any questions with respect to this should be directed to the Treasury Board of Canada Secretariat that publishes the reports of determinations on the Government of Canada website (Canada.ca).

Government advertising and official languages

Question 8: What is the role of Public Services and Procurement Canada to ensure compliance of government advertising with official language obligations?

PSPC is strongly committed to meeting its obligations under the Official Languages Act and supporting official language minority communities in Canada.

Our department's role (through the Advertising Services Directorate) is to provide advice and training to the departments on the advertising process, best practices, and relevant laws, policies and related instruments, to ensure that their knowledge remains up-to-date, and that their activities are undertaken in accordance with relevant laws and policies.

In its government-wide advisory capacity, the Advertising Services Directorate provides guidelines to help departments meet their official language obligations when undertaking advertising activities. The basic principles are:

Question 9: Why has government advertising spending decreased with official language minority media to reach these communities?

The Policy on Communications and Federal Identity directs the Government of Canada to communicate with Canadians on the channels that they are using, including digital platforms, while continuing to use multiple channels to meet the diverse information needs of the public.

It is important to keep in mind that official language minority communities represent a portion of Canada's English and French speaking population. They are defined in the census as people whose first official language spoken is English in Quebec and French outside Quebec. When undertaking government advertising, English and French speaking population must be reached adequately, regardless of where they reside, in accordance with the Official Languages Act.

In its government-wide advisory capacity, our department (through the Advertising Services Directorate) met several times with representatives of official language minority media to share information about government advertising spending patterns and discuss issues. Also, we facilitated meetings between representatives and the Government of Canada's agency of record for advice on how they could strengthen their offering to improve their opportunities through greater standardization, measurement and product expansion for the digital age.

Government advertising on American platforms

Question 10: Why does the Government of Canada select American platforms for government advertising?

The Policy on Communications and Federal Identity directs the Government of Canada to communicate with Canadians on the channels that they are using, while continuing to use multiple channels to meet the diverse information needs of the public.

Each advertising campaign uses media channels that best reach the target audiences in order to achieve the campaign objectives. Decisions regarding media placement are the responsibility of individual departments.

Agency of record

Question 11: What does the agency of record do?

The agency of record is the sole supplier responsible for media planning, negotiation, placement, verification and consolidation of government advertising media placement..

The agency is a private sector supplier selected by the Government of Canada (through PSPC's Communications Procurement Directorate) following a rigorous, open and transparent procurement process.

Question 12: Why does the Government of Canada use an agency of record?

The Government of Canada has been using an agency of record for over 25 years, and the mandate has been maintained for a variety of reasons. The 3 main ones are:

Question 13: Who is the agency of record and how was it selected?

The current contract is with Cossette Media Inc. It was awarded on July 31, 2019, following a national competitive solicitation process, and is valid until July 31, 2022, with the possibility of 2 additional 1-year option periods, for a maximum period of 5 years.

The mandate is complex and generally requires 12 to 18 months of advanced planning, research and internal and external consultations, before the request for proposals is published. The procurement approach for the last procurement process included:

Since 2010, 3 agency of record procurement processes have taken place. While a limited number of agencies can provide the services required, each process attracted multiple bids. The periods and the number of bids received for the last 3 contracts were:

General questions on government advertising

Question 14: What is the purpose of advertising within the Government of Canada?

The Government of Canada has an obligation to inform Canadians about policies, programs, services, rights and responsibilities, as well as to alert them of environmental, public health and safety issues. Advertising is one of the means of communications used to achieve this, and is an important way for the government to get timely information to Canadians.

Question 15: What is the role of Public Services and Procurement Canada in the management of government advertising?

As a common service organization for the Government of Canada, the role of PSPC involves 3 of its directorates. Their roles are:

Question 16: Why is Public Services and Procurement Canada responsible for producing the annual report on government advertising?

The role of PSPC in regards to the annual report is defined in policy, in the Directive on the Management of Communications. Our department (through the Advertising Services Directorate) is designated responsible for publishing an annual report on government advertising activities.

Question 17: When did Government of Canada start producing an annual report on government advertising?

The Government of Canada began producing an annual report on government advertising in 2002 to 2003, as part of a number of measures introduced to improve the management, openness and transparency of government advertising activities.

The Annual Report on Government of Canada Advertising is published by PSPC (through the Advertising Services Directorate), on our department's website. In 2016, the Minister approved a fixed annual publishing date for the report on the last business day of January.

Information in the report is collected and validated from the departments that have undertaken advertising activities over the previous fiscal year. This includes organizations subject to the Policy on Communications and Federal Identity, as set out under Schedules I, I.1 and II of the Financial Administration Act, unless excluded by specific acts, regulations or orders in council.

The 2019 to 2020 Annual Report on Government of Canada Advertising Activities was just published on January 29, 2021.

Media scan

Notes

Federal government advertising

Coverage on federal government advertising from January 2020 to today was low, focusing mostly on the ever increasing share of advertising captured by social media and how detrimental it is to traditional Canadian media, especially to small regional media. Articles note that Google and Facebook dominate Canadian advertising, including advertising from the Government of Canada.

A report from News Media Canada estimates that internet giants are also harming Canadians access to news stating that “The estimated market share for Google and Facebook is over 75% of markets for digital advertising in Canada. This asymmetry in market power results in unfair terms imposed on news publishers who develop original journalism, engendering a decrease in the quantity and quality of the same and threatening the supply of the same to the Canadian people”. ( Radio-Canada InternationalFootnote 1, Toronto StarFootnote 2, The Kingston Whig StandardFootnote 3)

On January 12, the Toronto StarFootnote 2 referenced Public Services and Procurement Canada's (PSPC) latest annual report on federal government advertising and noted that the amount spent on Facebook and Google has increased every year since 2015 to 2016, now representing roughly 27% of the government's total annual advertising budget.

In terms of solutions for ways to save traditional media, it is mentioned that newspapers around the world want Google and Facebook to pay for their content. Following a drop in revenue due to the pandemic and years of battles against the “giants”, Canadian Heritage Minister, Steven Guilbeault, suggested that the federal government could force Google and Facebook to invest in Canadian journalism to “recycle some of their monopoly dollars”. (The Kingston Whig StandardFootnote 3)

The Toronto StarFootnote 4 also noted that the federal government is currently working on rules to make digital platforms pay media companies and is aiming to introduce new legislation by summer 2021. The article notes that this information came from a senior government official who the Star will not name because the source was not authorized to speak publicly.

Public Services and Procurement Canada

Quote from Toronto StarFootnote 2 article:

The government is "committed to meeting Canadians on the platforms where they are at"

John Hinds, chief executive officer of News Media Canada

Quote from Toronto StarFootnote 4 article:

Hinds argued the federal government could fulfil its stated intent to support Canadian media content by advertising with digital publishers based in this country. He said this would also ensure government ads reach wide audiences of readers and viewers. "Are you really fulfilling your mandate to reach Canadians when you just push the button with these digital players?"

Overview of the committee

Standing Committee on Public Accounts

Mandate of the committee

When the speaker tables a report by the auditor general in the House of Commons, it is automatically referred to the Standing Committee on Public Accounts (PACP). The committee selects the chapters of the report it wants to study and calls the auditor general and senior public servants from the audited organizations to appear before it to respond to the Office of the Auditor General's findings. The committee also reviews the federal government's consolidated financial statements—the Public Accounts of Canada—and examines financial and/or accounting shortcomings raised by the Auditor General. At the conclusion of a study, the committee may present a report to the House of Commons that includes recommendations to the government for improvements in administrative and financial practices and controls of federal departments and agencies.

Government policy, and the extent to which policy objectives are achieved, are generally not examined by the Public Accounts Committee. Instead, the committee focuses on government administration—the economy and efficiency of program delivery as well as the adherence to government policies, directives and standards. The committee seeks to hold the government to account for effective public administration and due regard for public funds.

Pursuant to standing order 108(3) of the House of Commons, the mandate of the Standing Committee on Public Accounts is to review and report on:

The committee also:

Other responsibilities:

Committee members

Kelly Block, Conservative, Chair
Kelly Block
  • Constituency: Saskatchewan—Carlton Trail—Eagle Creek
  • Elected as the member of Parliament (MP) in 2015 for Carlton Trail—Eagle Creek, previously for Saskatoon—Rosetown—Biggar from 2008 to 2015
  • Served as vice-chair on the Standing Committee on Transport, Infrastructure and Communities in the 42nd Parliament
  • Member of the Liaison Standing Committee
  • Previous member of the Standing Committee of Government Operations and Estimates in the 43rd and 41st Parliament, the Standing Committee of Finance in the 40th Parliament
  • Served as the opposition critic for Public Services and Procurement Canada (appointed by Andrew Scheer)
  • Prior to her election, Mrs. Block served 2 terms as the first female mayor of Waldheim, Saskatchewan, as chairperson of the Gabriel Springs Health District, and was awarded the Maclean's Parliamentarian of the Year—Rising Star—Award in June 2010
  • PACP member and chair since October 2020
Lloyd Longfield, Liberal, First Vice-Chair
Lloyd Longfield
  • Ontario—Guelph
  • Elected as the member of Parliament for the riding of Guelph in 2015
  • Former member of the Public Accounts Committee (PACP) in the 43rd Parliament and is a standing member of the Environment and Sustainable Development Committee (ENVI)
  • Former Executive Director of the Guelph Chamber of Commerce, and former business executive
  • PACP member and Vice-Chair since February 2020
Maxime Blanchette-Joncas, Bloc Québécois, Second vice-chair
Maxime Blanchette-Joncas
  • Constituency: Québec—Rimouski-Neigette—Témiscouata—Les Basques
  • Elected as the member of Parliament for Rimouski-Neigette—Témiscouata—Les Basques in the 2019 federal election
  • Bloc Québécois (BQ) critic for Public Accounts
  • Preceded in his riding by Guy Caron who served as the leader of the New Democrat Party (NDP) from 2017 to 2019
  • Business Administration graduate from the University of Quebec in Rimouski and former administrative officer at the Business Development Bank of Canada
  • Was regional president of the Youth Forum of the Bloc Québécois
  • PACP member and Vice-Chair since February 2020
Luc Berthold, Conservative, Member
Luc Berthold
  • Constituency: Mégantic—L'Érable
  • Elected as the member of Parliament for Mégantic—L'Érable in 2015
  • Critic for Treasury Board
  • Previously the Vice-Chair of the Standing Committee on Transport, Infrastructure and Communities, and the Standing Committee on Agriculture and Agri-Food
  • Prior to his election, Mr. Berthold was Nathalie Normandeau's Political Assistant, and communications advisor for the Leader of the Official Opposition in 1999, the Interim Director of communications for Quebec's Liberal Party in 2006, and worked as a speaker, coach and gave leadership training sessions
  • PACP member since October 2020
Phillip Lawrence, Conservative, Member
Phillip Lawrence
  • Constituency: Northumberland—Peterborough South
  • Elected as the member of Parliament for the riding of Northumberland—Peterborough South in the 2019 federal election
  • Shadow Minister of National Revenue
  • Former member of Standing Committee of Justice and Human Rights
  • Prior to his election, Mr. Lawrence received his Bachelor of Arts (BA) from Brock University in Political Science, he attended Osgoode Hall Law School and the Schulich School of business to obtain his law degree and Master of Business Administration (MBA), and volunteered at the Financial Planning Standards Council
  • PACP member since October 2020
Len Webber, Conservative, Member
Len Webber
  • Constituency: Calgary Confederation
  • Elected as the Member of Parliament for the riding of Calgary Confederation in 2015
  • Former Vice-Chair of the Standing Committee on Health in the 42nd Parliament
  • Previously a member on the Standing Committee on Health, the Subcommittee on Sports-Related Concussions in Canada of the Standing Committee on Health and the Subcommittee on Agenda and Procedure of the Standing Committee on Health
  • Prior to his election, Mr. Webber was a Member of the Legislative Assembly of Alberta, representing the constituency of Calgary-Foothills from 2004 to 2014, work as an apprentice electrician and managed his own contracting company for 10 years, and served as vice president and director of the Webber Academy, a private, non-profit school in southwest Calgary for children from
  • PACP member since October 2020
Matthew Green, National Democratic Party, Member
Matthew Green
  • Constituency: Ontario—Hamilton Centre
  • Elected as the member of Parliament for Hamilton Centre in the 2019 federal election in the riding formerly held by NDP MP David Christopherson
  • NDP critic for National Revenue/Canada Revenue Agency (CRA), Public Services and Procurement
  • Former Councilor for the City of Hamilton (2014 to 2018)
  • Member of the House of Commons Standing Committee on Public Accounts (PACP), the Standing Committee on Government Operations and Estimates (OGGO), and the Subcommittee on Agenda and Procedure of the Standing Committee on Government Operations and Estimates
  • Member of the Canada-Africa Parliamentary Association (CAAF) and the Canadian Section of ParlAmericas (CPAM)
  • PACP member since February 2020
Kody Blois, Liberal, Member
Kody Blois
  • Constituency: Kings-Hants
  • Elected as the member of Parliament for the riding of Kings—Hants in the 2019 federal election, in the riding formerly held by former Treasury Board of Canada Secretariat (TBS) President Scott Brison
  • Current member of the Standing Committee for Agriculture and Agri-Food, and the Subcommittee on Agenda and Procedure of the Standing Committee on Agriculture and Agri-Food
  • Former member of the Standing Committee for Agriculture and Agri-Food, and the Standing Committee on Public Accounts
  • Blois completed degrees in commerce, law, and public administration—which sparked his interest in serving his community
  • PACP member since February 2020
Greg Fergus, Liberal, Member
Greg Fergus
  • Constituency: Hull-Alymer
  • Parliamentary Secretary to the President of the Treasury Board and Minister of Digital Government
  • Elected as the member of Parliament for the riding of Hull—Aylmer in 2015
  • Member of the Standing Committee on Access to Information, Privacy and Ethics
  • Former member of the Standing Committee on Finance, and the Standing Committee on Public Accounts
  • Current and Former Parliamentary Secretary to the President of the Treasury Board and Minister of Digital Government and former Parliamentary Secretary to the Minister of Innovation, Science and Economic Development
  • Former National Director of the Liberal Party of Canada and former political staffer in various Ministerial offices
  • PACP member since May 2019
Francesco Sorbara, Liberal, Member
Francesco Sorbara
  • Constituency: Vaugh-Woodbridge
  • Elected as the Member of Parliament for the riding of Vaughan—Woodbridge in 2015
  • Member of the Standing Committee on Access to Information, Privacy and Ethics
  • Former member of the Standing Committee on Finance, as well as the Subcommittee on Agenda and Procedure of the Standing Committee on Finance, and the Standing Committee on Public Accounts
  • Parliamentary Secretary to the Minister of National Revenue
  • Sorbara is a chartered financial analyst and worked in the global financial markets for nearly 20 years in both Canada and the United States for Scotiabank, JPMorgan Chase, and global credit rating agency DBRS
  • PACP member since February 2020
Jean Yip, Liberal, Member
Jean Yip
  • Constituency: Scarborough-Agincourt
  • First elected in a by-election on December 11, 2017 as the Member of Parliament for the riding of Scarborough—Agincourt
  • Elected in 2019 as the Member of Parliament for the riding of Scarborough—Agincourt
  • Current member of the Special Committee on Canada-China Relations
  • Former member of the Public Accounts committee, and the Government Operations and Estimates Committee
  • PACP member since January 2018

Spring 2019 reports of the Auditor General of Canada: Report 4, Oversight of Government of Canada Advertising

Meeting summaries
43rd Parliament
42nd Parliament, second session
42nd Parliament, first session
42nd Parliament
Meeting of Thursday, May 9, 2019 on 2019 spring reports of the Auditor General of Canada: Office of the Auditor General—Overview of report

Mr. Ricard, the Interim Auditor General of Canada, discussed the overview of each report in the 2019 spring reports. In report 4, Mr. Ricard discussed that that government has a policy that requires all communications to be non-partisan. The government has put a review mechanism in place to avoid partisan advertising. However, the money threshold is the only factor that determines whether or not the campaign is reviewed externally or internally. The Office of the Auditor General (OAG) believes that the subject matter and the aim of the campaign should also be considered.

Interest in Treasury Board Secretariat/Minister of Digital Government's office portfolio

Conservative
Liberal
Bloc Québécois
New Democratic Party

Other relevant parliamentary activity

Document navigation for "Standing Committee on Public Accounts: February 23, 2021"

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